Dear investors and community members,
THEKEY project team proudly released its first ever Progress Report on April 15th, 2018 and it has been exactly one year since then. Over the past fruitful year, three Progress Reports have been released. Today we are going to issue the fourth one to demonstrate the latest development of THEKEY and announce the roadmap for the next year.
As we look back over the past year, remarkable achievements have been made.
- The first Progress Report stated in detail that the cooperation we entered into with not only world leading law, accounting firms but also prestigious companies at home.
- In the second Progress Report, we have released THEKEY Testnet which indicated that “undeniable” and “unalterable” online IDV results were generated for the first time in the world through Blockchain based Dynamic Multi-Dimension Identification (BDMI) technology.
- While the last Report was about the accomplishment of BDMI Mainnet which has focused on improving the performance, efficiency and reliability of BDMI technology. We also have realized the multi-scenario applications of BDMI technology in the process, both for the mobile medical insurance payment in Kaifeng City, and Multi-dimensional Elderly Survival Authentication in Guizhou Province, China.
All the aforesaid accomplishments have proven that BDMI is an indispensable underlying layer that will facilitate the development of blockchain technology and the digital economy, and the feasibility of the technical solution we mentioned in the White Paper with developing IDV technology based on data from the government involved.
Nevertheless, we have also discovered the following six existing issues to be addressed in the further development of the Project:
- Multi-scenario application requires a multi-consensus mechanism, and the current single-consensus mechanism is not sufficient to meet this requirement.
- There is a strong correlation between performance and the consensus mechanism.
- Security of whichever platform we would choose would be beyond our scope of control, leading to safety and/or security risks to data, funds and patients.
- Current platforms have not been designed to handle the sheer amount of data, such as patients’ medical image/footage, etc.
- The business logic can only be realized via Smart Contracts and DAPP development, severely limiting or negating the possibility for extreme platform capacity.
- Governance logic of virtual world does not suit the real world.
Apparently, the aforesaid problems are not only the challenges faced by THEKEY, but also the bottleneck in the development and operation of the blockchain industry. NEO or any other public chain cannot properly solve the problems by nature due to its structural constraints and limitations We believe addressing these problems is the prerequisite for the accomplishment of the productive deployment of IDV, and only by building a public chain exclusively for the Project, with the combination of blockchain and big data technology, can these problems be solved.
Addressing the issues in the first place requires theoretical breakthroughs. World leading researchers and experts from my team have been working day and night and made many effective explorations and evaluations by adopting new consensus mechanisms, encryption algorithms since June 11th, 2018. And the extinguished Ternary Hybrid Theory has been developed up to date to solve the problems.
The fundamental purpose of the public chain is to promote the safe transmission and use of data needed for IDV including government data, network data, operators’ data and data from utility companies among different stakeholders in a highly decentralized community through blockchain technology. Apart from the cryptocurrency issuance and transactions that have enriched some and impoverished others, so far there have been no significant, large-scale real-world blockchain use case deployments. The reason for this, I believe, is that most digital entrepreneurs have been guided by the success of Bitcoin, Ethereum and other popular blockchain projects, and have yet to realize that the same technical, operation and business models cannot be used to address social issues, which are completely different and far more complicated than cryptocurrency issuance.
To address more complex social issues with blockchain, we have come up with the Ternary Hybrid Theory and have embedded three distinct “hybrid” characteristics into it: (1) it begins as a hybrid consensus solution (2) it involves the technical solution of hybrid governance mechanism, and (3) involves the hybrid technical solution of the combination of blockchain and big data technology.
Please now allow me to elaborate on my views regarding the above Theory:
- First, a technical solution using a hybrid consensus mechanism is adopted in our technical solution. The theoretical research and practice of human consensus mechanisms so far have undoubtedly proven that the use of a single consensus mechanism fail to meet the needs of multi-scenario data applications, especially the intricate social problems. Different consensus mechanisms are needed under different data application scenarios and we therefore will build up a hybrid chain of multiple consensus mechanisms. In the process of building a mixed consensus mechanism, we will first establish a safe consensus mechanism based on the basic medical insurance system and democratic decision-making, and use it as the main consensus mechanism. Secondly, we will also include various consensus mechanisms such as PBFT, DPOS, POW and DPFT. Thirdly, different nodes in our ecosystem have different permissions in different application scenarios. Finally, the platform will automatically identify the application scenario and select the appropriate consensus mechanism accordingly.
- A virtual world and real world hybrid governance mechanism is adopted in the technical solution. Projects such as Bitcoin and Ethereum have confirmed to some extent that blockchain is a technology that has been successful in virtual currency issuance, trading and public ledgers. However, this success should not and cannot be magnified into a universal truth, thus the mechanism is adopted in our ecosystem. We will also adopt a virtual world management mechanism that is similar to BTC or ETH in terms of currency, data and capital transactions, and public account maintenance. For the healthcare big data or government data collection, certification, processing, security transfer and use, the management system and mechanism consistent with laws and regulations and ethics are adopted. The benefits of doing so will fully inherit the achievements of the blockchain technology to date, while also ensuring system compliance, transparency and easier supervision.
- A blockchain and big data hybrid structure is adopted in our technical solution. The hardware, software, data and data processing methods of each node in the decentralized community are not the key factors that restrict the efficiency and security of blockchain projects. Therefore, in this project we rely on the existing government big data infrastructure, especially the big data infrastructure of the basic medical insurance institutions as the selected node. It optimizes the node resource guarantee, sequence priority and adopts the pre-chain data acquisition, processing, analysis and application integration solution to simplify the algorithm of the consensus mechanism and greatly improve the efficiency of the system.
I mix a variety of consensus mechanisms, a mixture of multiple governance mechanisms, and a mixture of blockchain and big data technology and call it the Ternary Hybrid Theory. Guided by the Theory, we will be developing the IDV technology based on the existing government big data infrastructure, especially the big data infrastructure of the basic medical insurance management organization. And in turn promote the safe flow and use of personal health data between different stakeholders in a decentralized environment.
Under the guidance of the Theory, my team has achieved tremendous progress over the past five months, which are showed as follows:
- The proprietary consensus mechanism — Proof of Power (PoP) has been developed as the pillar of Ternary Hybrid Theory and the foundation for the construction of our public chain.
- Cooperation with the Network Big Data Security Analysis Laboratory established by Ministry of Industry and Information Technology and Harbin Institute of Technology in research of the mixed-consensus mechanism.
- Technical preparation for the productive deployment of IDV in Guizhou Province and Kaifeng City.
Apart from the cryptocurrency issuance and transactions that have enriched some and impoverished others, so far there have been no significant, large-scale real world blockchain use case deployments. We firmly believe the technology, operation and business models that can be used to address social issues with specific commercial purposes have real value, which is the reason why we have been laying emphasis on improving the commercial value of THEKEY project itself.
- The launch of the insurance product incorporated both social and commercial Insurance data in Kaifeng City signifies a milestone for the social security data socialization and commercialization, showing considerable commercial value of THEKEY Project.
- We have finished the preparation for large-scale promotion of blockchain solution in various industries, such as insurance companies, medical data companies and financial institutions, etc.
3. Cooperation with the Chinese government.
- Despite the impact the restructure of human resources and social security department and the establishment of the State Healthcare Security Bureau posed on expanding the cooperation with Chinese government, great success has been achieved last year. Currently the number of cities THEKEY cooperating with grew from 66 to 89, covering the population of 320 million.
- We won the International Competitive Bidding (ICB) organized by People’s Bank of China and Nanjing Municipal Government. Further investment and government support has been guaranteed.
Based on the aforesaid achievements THEKEY has made, we are now disclosing an up-to-date roadmap as follows:
Furthermore, I will host a global “Ask Me Anything” (AMA) session on Reddit on April 20th, 2019 (GMT+8:00), where I will be ready to answer questions from all of you. The mainstream IDV service providers, blockchain experts and KOLs are all welcome to join in the discussion.
To close, we still hold strong confidence towards the development of blockchain technology and digital currency while witnessing many of the early players of cryptocurrency and blockchain industries have entered a downward spiral. And we will keep being dedicated to developing THEKEY BDMI technology and bringing the Ternary Hybrid Theory into practice as soon as we can. We can assure you more will come in the coming months!
I thank you sincerely for your support!
THEKEY, which you can always trust and rely on.
With warm regards and I remain,
Most truly yours,
Chairwoman and CEO of THEKEY
April 15th, 2019
THEKEY is a decentralized ecosystem of Identity Verification (IDV) tool integrating national big-data and the blockchain. THEKEY’s proprietary Blockchain based Dynamic Multi-dimension Identification (BDMI) platform has been using Personal Identity Information (PII) exclusively authorized by the Chinese Government. THEKEY token (TKY) is the only method to settle smart contracts across THEKEY Ecosystem, which is tradable on HitBTC, Bit-Z, KuCoin, Lbank, etc. THEKEY mainnet was launched in Nov 2018. THEKEY was granted the National “Technology Innovation Award of 2018 Chinese Government’s Information Product”; won the International Competitive Bidding co-launched by People’s Bank of China and Nanjing Municipal Government, and achieved social security data socialization and commercialization for the first time in Kaifeng, China.
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